Reels, which is a massive product is going to increase its monetization between now and the end of the year. Email. We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. And so for us, it's about simplification, reduction of gross and making sure that you consolidate that what you own into your highest conviction ideas whether you're playing at home in your 401k or whether you're doing this professionally. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. The last 10 years have been a unique time in tech and for Meta. Those three companies are all down that amount because it turns out that this year people got off their couch, they went out and they went to restaurants and they went in and did things instead of buy things. I can't tell you what's going to happen the next three days or the next three weeks or even three months. Your P/E ratio has fallen from 23x to 12x and now trades at less than half the average P/E of your peers. But far from being a bad decision, we think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum. Whether it is making Whatsapp more seamless or making content and ads more useful on Instagram, Reels and Facebook AI is a globally scarce resource that already is driving noticeable improvements for Metas three billion customers and advertisers. Advertisement Gerstner, through Altimeter, manages over $15.0 billion worth of investments across private equity and venture capital. The comp against IDFA was very difficult in Q1 and will again be difficult in q2. Why 20%? I don't think the Fed is going to throw away two years' worth of work to try to avoid a recession in a election year and run us straight into the teeth of a recession while we're trying to fight a war in Europe. Dave Baszucki of Roblox describes the metaverse as the natural evolution of communication a multi-device world, including the phone, that is best thought of as a better version of text, video, and voice that will make us feel more connected. This is expected to facilitate trade as the West ratchets up sanctions on Russia. Tina Sharkey, CEO of SherpaFoundry; former board member of HomeAway; and An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. I'll acknowledge that Roblox and other names like that are in a much smaller, are in a much more perilous position in this market because they're not generating as much free cash as some of these other companies that I already mentioned. Brad Gerstner's Phone Number and Email Last Update. And, while that ultimately is an important long-term measure of success for all of Metas stakeholders, it would be imprudent to make short-term bad decisions just to improve the share price. Bill Ackman's: Pershing Square Capital Management. We hereby appoint ISDA as our agent for the limited purposes of the Protocol Agreement and accordingly we waive, and hereby release ISDA from, any rights, claims, actions or causes of action whatsoever (whether in contract, tort or otherwise) arising out of or in any way relating to this Adherence Letter or our adherence to the Protocol Agreement or any actions contemplated as being required by ISDA. Finally, Prudential PLC lifted its . Our contact information, solely for purposes of this Adherence Letter (and unrelated to the Questionnaire delivery options in the subsequent section) is: We consent to the publication of a conformed copy of this letter by ISDA and to the disclosure by ISDA of the contents of this letter. The stock is 51% off of its high. I'm going to own these companies, there are a handful of select companies that are free cashflow positive that are going to be worth more in the future. Brad Gerstner Conclusion A Leaner, Faster, More Successful Meta. With the gains posted on March 3, Meta Platforms shares are up 54% this year. Get this delivered to your inbox, and more info about our products and services. We're down on the year. Congrats on the new show. Credit Derivatives Determinations Committees, how to enable How many dogs want to eat the dog food? Meta changed its company name from Facebook. FTX, once the third-largest centralized cryptocurrency exchange, is now in U.S. bankruptcy. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Days Trial Meta changed its company name from Facebook to better focus on its VR hardware and software and is spending $10 billion per year on the technology. We understand that the Protocol is designed to amend only those Protocol Covered Agreements between two Adhering Parties that were previously amended pursuant to the terms of the August 2012 Protocol, the March 2013 Protocol or both. SPACs notched more than $70 billion so far in 2021, a new record. With all of this said, we truly believe that the company should be making some of these important investments. So I am very unhappy because I've lost money on the deal. You know, I told people at the time that, you know, there's risk in making these investments, right, we're shareholders of this, we've lost capital. This company is perfectly positioned to capitalize on that they have the, the ad network to monetize it. With all of this said, we truly believe that the company should be making some of these important investments. Includes DocuBay and TimesPrime Membership. After several years of growing tensions, the potential for a reset under Australia's new Labor government is in question as trade sanctions remain and diplomatic disputes persist. Crowdfunding is the use of small amounts of capital from a large number of people to raise money or fund a business. The social media company had in June cut plans to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn. And so we're getting hurt like everybody else. Will His AI Plans Be Any Different? Altimeter said annual free cash flow can be doubled to $40 billion if it cut headcount by at least 20%, trimmed capital expenditure by at least $5 billion to $25 billion a year and capped annual investment in the metaverse to $5 billion instead of the current $10 billion. They're fearful about the war. It's going to do 20 billion in GMV. If the company were investing $12B per year into this project, then that confusion might not even be a problem. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. The definitions and provisions contained in the Protocol Agreement are incorporated into this Adherence Letter, which will supplement and form part of each Protocol Covered Agreement between us and each other Adhering Party. They are people with families and kids to support. Can they maintain their growth momentum? Meta. Drew Angerer | Getty Images News | Getty Images, Meta needs to focus on its core business, not the Metaverse, says Sand Hill's Brenda Vingiello. 233 South Wacker Drive I imagine they're going to be super aggressive about how they're buying back shares. PLAN, Yearly Ranked #76 out of 483 Hedge Fund Managers. WAPNER: So let me talk about your overall exposure if I if I could because by last December, you had said you had taken most of your your shorts off and your long exposure was back up to 70%. Conclusion A Leaner, Faster, More Successful Meta. . We also believe Metas investment in AI will lead to exciting and important new products that can be cross-sold to billions of customers. At $20-$25B of annual capex, Meta will still be investing market leading amounts to help invent the future of AI. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Barney Harford, former CEO of Orbitz Worldwide; former board member of Orbitz Worldwide and eLong; It makes no sense to me, but that is the risk that you run. 2023 International Swaps and Derivatives Association, Inc. It's our largest position we're not selling but we acknowledge that it's been rough for our investors, rough for us. To read full story, subscribe to ET Prime, Billed annually at And for us, we consolidate behind the things we have deep conviction in with confidence they're going to be worth more in the future. The silver lining is that unlike many companies, this popular narrative obscures the truth. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Musk Made a Mess at Twitter. Subject: Meaningful Board Change Required In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). Privacy Policy, ISDA uses cookies to enhance your experience on our website. WAPNER: Okay, that's a that's a big a bold call. These are not numbers on a spreadsheet. What's going to be the inflation print in April? ", Medium.com. We've destroyed over $15 trillion of stock market wealth. I think, or inflation, I think they're behind the curve on recession. So we've taken up our exposure, we've consolidated behind our five or six best ideas, we don't run leverage and so the bet for our LPs, I'm the largest LP in the fund. AGCUU went public at $10 on Oct. 1, and closed Tuesday at $11.80. In our view given United's valuable and industry-leading strategic asset base this long-term underperformance directly results from an underqualified, ineffective, complacent, and entrenched Board. He argued that this was "one of the big reasons behind these price cuts.". They just announced that they're going to be profit, full company profitable by 2023. We certainly our base case, as you know, was a soft landing four to five rate hikes into this year. The Meta investor recommends a plan to get the company's "mojo back.". Facebook's revenues in Q1 were lower than people expected. Rates are going up and we have a war. We further understand that ISDA assigned a unique identification code or ALID to each adherence letter that was accepted for the August 2012 Protocol or the March 2013 Protocol and that, in order to amend a Protocol Covered Agreement pursuant to: (i) Appendix 1 to this Protocol (which is intended to top up agreements made pursuant to the August 2012 Protocol), we must provide our August 2012 Protocol ALID below; or (ii) Appendix 2 to the Protocol (which is intended to top up agreements made pursuant to the March 2013 Protocol), we must provide our March 2013 Protocol ALID below: From Grand Teton to Universal Speech Translator to Make-A-Video, we are witnessing a Cambrian moment in AI, and Meta is no doubt well positioned to help invent and monetize that future. Chief Executive Officer In the back half, you don't have those same comp issues that you have caused by COVID. QUARTERLY LETTER 2022 | Vol.1 1345 AVENUE OF THE AMERICA S 33RDFLOOR NEW YORK, NY 10105 HAYDENCAPITAL.COM HAYDEN CAPITAL 2 May 20, 2022 Dear Partners and Friends, The last six months have been extremely painful - by far, the worst period since we started Hayden. So we believe not only you're going to get dramatically accelerated earnings, right, we think they're going to be a little bit more cautious about how they're spending those meta investment dollars, how they're spending dollars across the business. I don't think they can. 3,30,700 crore) if it cut headcount by at least 20 percent, trimmed capital expenditure by at least $5 billion (roughly Rs. It said Grab is expected to raise between. Altimeter Capital Management is a hedge fund with 17 clients and discretionary assets under management (AUM) of $17,950,309,162 (Form ADV from 2022-05-27). What is the Fed going to do? Meta stock is down over 61% in 2022. As you know, Altimeter Capital Management and PAR Capital Management are long-term United Continental Holdings, Inc. ("United") stockholders that together own approximately 7.1% of United's outstanding common stock. Sign Up. So take Snowflake as an example. JavaScript in your web browser. GERSTNER: Scott, thanks for having me. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion. effective risk management for all users of derivative products. As always, happy to connect with you and your team. "We think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum," Gerstner wrote. Brad Gerstner's Altimeter Capital Management has between $300 million and $400 million in assets under management, and invests almost exclusively in the services sector. The vast majority of the capex has been an essential and high-returning investment in data centers, Nvidia GPUs and other AI resources to solidify the companys position as one of worlds leaders in AI. The purpose of this letter is to confirm our adherence as a Protocol Participant to the ISDA 2021 SBS Top-Up Protocol Agreement as published by the International Swaps and Derivatives Association, Inc. on February 25, 2021 (the Protocol Agreement). Altimeter Capital Management partner Chris Conforti plans to leave the investment firm, according to people with knowledge of the matter. WAPNER: Man, I love how honest you are and I know our viewers do as well. 16,839 Followers. At the end of the second quarter this year, Altimeter Capital held more than 2 million shares of Meta. Bruce Berkowitz's: Fairholme Capital Management. How big are the margins, ultimately Snowflake will be worth a lot more because there is almost endless demand for the product and this is a business that is highly profitable. Read More . It is a poorly kept secret in Silicon Valley that companies ranging from Google to Meta to Twitter to Uber could achieve similar levels of revenue with far fewer people. "In short, Meta needs to get fit and focused.". Popular Searches. And Meta certainly has abundant financial resources to invest and / or return to shareholders. The lagging stock price under this Board's control and supervision directly reflects substantial underperformance in terms of operational reliability, customer satisfaction, market share, profitability, and return on invested capital. Think about this, Scott. These include white papers, government data, original reporting, and interviews with industry experts. But admittedly, you know, nights like tonight we'll we'll get we'll catch a little less sleep. Worse, this skepticism seemed to be affirmed with a nearly-immediate and sizable miss in financial results and continued under-performance throughout 2022. Right. But I am confident these companies like Snowflake, like Uber, like Facebook are going to be worth more than they are today at significantly more if you look out two years. Two years from now, people are going to be looking back and say, why the hell didn't you buy Snowflake at 160 bucks a share? Altimeter Growth Corp. raised $450 million in an October 2020 IPO. So I think they got to match the investment to the revenue growth of the business. Updated on September 30, 2022. Altimeter is based in California and has about $16 billion in . When you look at these questions, it comes down to this. Southeast Asian superapp Grab is likely to set a world record by selling itself into a special purpose acquisition company, or SPAC, run by U.S. tech venture capital investors Altimeter Capital . But what is the right amount? Meta and other large companies have made it very difficult for start-ups to hire. Metas core business is one of the largest and most profitable in the world with over $45 B in operating profits last year alone. Altimeter Capital partner Kevin Wang led the firm's investment in cloud data platform Snowflake in 2015 in its $45 million Series C round; he sat on its board until 2020. "Meta needs to re-build confidence with investors, employees and the tech community in order to attract, inspire, and retain the best people in the world," Gerstner wrote in the letter. But far from being a bad decision, we think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum. The last 10 years have been a unique time in tech and for Meta. CNBC Exclusive: CNBC Transcript: Altimeter Capital Founder & CEO Brad Gerstner Speaks with CNBC's Scott Wapner on "Closing Bell: Overtime" Today Published Mon, Mar 14 20225:56 PM EDT Share. And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward.